do companies still issue paper stock certificates

Introduction

Do companies still issue paper stock certificates? If you’re asking this, you’re not alone. Many investors — from first-timers to long-time shareholders — want to know whether physical paper stock certificates remain available, how ownership is recorded today, and what steps to take if they want a tangible certificate. This guide answers that question in plain language, explains the legal and operational background, and gives step-by-step practical advice.

As of 2024-06-01, according to the SIFMA white paper and investor-education sources such as Investopedia and UpCounsel, electronic/book-entry systems are the industry standard for recording share ownership, but paper stock certificates can still be issued or obtained in many cases depending on company policy, transfer-agent procedures, and jurisdictional rules.

H2 below provide a structured walkthrough: history, the rise of electronic registration, current practice for public and private companies, legal/regulatory context, how to request a certificate, costs and risks, replacement of lost certificates, collecting and historical value, future trends including digital pilots, and practical recommendations. If you prefer modern custody and trading workflows, consider exploring Bitget Wallet and Bitget exchange services for secure electronic holdings and trading.

Do companies still issue paper stock certificates? — Overview

Short answer: Yes, but rarely as the default. Do companies still issue paper stock certificates? For most publicly traded companies, share ownership is recorded electronically (book-entry) and brokers or clearinghouses manage custody; however, companies and transfer agents can and sometimes do issue paper certificates on request. Private companies, historical issuances, and collectibles are contexts where paper certificates are more common.

This article uses the phrase do companies still issue paper stock certificates multiple times to help you find precisely the information you need, including practical steps to request or replace a certificate and the trade-offs involved.

History of stock certificates

Paper stock certificates were the traditional, legally recognized proof of ownership in corporations for more than two centuries. Early certificates were printed on high-quality paper with engraved designs, signatures, embossed seals and certificates often carried legal language describing the number and class of shares. These documents served three main roles:

• Legal evidence of ownership and the right to dividends or voting (subject to corporate bylaws);
• A negotiable instrument for transfer and settlement before rapid electronic systems existed;
• An aesthetic and historical artifact — many early certificates are valued by collectors for design, typography, and provenance.

Until the late 20th century, most transfers were effected by physically delivering endorsed certificates or by paper-based ledgers maintained by transfer agents. The growth of global trading volumes, computerized recordkeeping, and centralized clearance systems made paper slow, risky, and expensive. This led to a broad industry move toward electronic/book-entry ownership.

Transition to electronic/book-entry ownership

The shift from paper stock certificates to electronic or book-entry ownership happened across financial markets for efficiency, security and cost reasons. Key developments included:

• Broker "street name" registration: Brokers commonly hold securities in their name on behalf of clients to allow fast trading and settlement.
• Centralized clearing and depositories: In the United States, the Depository Trust Company (DTC) and similar entities in other jurisdictions facilitate centralized custody and electronic settlement of most exchange-traded securities.
• Direct Registration System (DRS): A system that allows investors to hold shares electronically in their own name on a company’s transfer-agent register without a broker.

Motivations for the transition included lower settlement times, reduced risk of physical loss or forgery, lower administrative costs for issuers, and regulatory initiatives to modernize markets. Industry analyses and white papers (for example, SIFMA and DTCC commentaries) document how electronic holdings improved market resilience and scaling.

Current prevalence and practice

Do companies still issue paper stock certificates? The current practice is that most publicly traded companies, mutual funds and ETFs do not routinely issue paper stock certificates to new shareholders. Instead:

• Most shares of listed companies are held in electronic form at clearinghouses or in brokers’ custody (street name).
• Companies frequently allow an investor to request a paper certificate, but this depends on the company’s policy and the transfer agent’s procedures.
• Some companies explicitly stop issuing paper certificates as a policy, favoring uncertificated shares or DRS registration.

Private companies historically relied more on paper certificates for founders and early investors, but many private firms now use electronic cap-table software or designate shares as uncertificated in corporate bylaws.

Public vs. private companies

• Public companies (exchange-listed): Rely heavily on electronic systems for speed and regulatory reporting. Investors trading on exchanges usually do so through brokers, and ownership is often recorded in street-name form.
• Private companies: May still issue paper certificates, particularly for founders or early investors, but modern practice increasingly favors uncertificated shares, electronic cap tables, and DRS-like arrangements.

Therefore, do companies still issue paper stock certificates? Yes — but mostly by request or in specific, less common scenarios.

Legal and regulatory framework

Legal and regulatory frameworks differ by country and U.S. state, but common features include:

• Many jurisdictions formally permit uncertificated shares and book-entry registration; corporate statutes and securities laws typically allow a corporation to issue uncertificated shares if authorized by charter/bylaws.
• Transfer agents are regulated service providers that maintain shareholder records and process issuance, transfers, and cancellations.
• Companies’ articles of incorporation or bylaws often govern whether certificates are issued and the terms for uncertificated shares.
• Investor protections exist for electronic holdings — brokers must provide periodic statements and regulators oversee custody standards.

Because rules vary, check the issuer’s charter and local securities law or consult the transfer agent for definitive guidance.

How to obtain a paper stock certificate today

If you want a physical stock certificate, there are a few practical routes. Answering the question do companies still issue paper stock certificates in specific cases typically involves these steps:

1. Check how your shares are currently held. Are they in a broker account (street name), held directly through DRS, or represented by an existing certificate? Your account statement should say.
2. If held by a broker, ask your broker whether they will request a certificate from the issuer’s transfer agent on your behalf. Some brokers allow conversion to DRS, then request a paper certificate; others do not.
3. If you hold DRS-registered shares (or can convert to DRS), contact the issuer’s transfer agent directly to request a paper certificate. Transfer agents’ processes usually require:
   • Proof of identity;
   • A written request or form;
   • Payment of applicable fees.
4. If the company offers a direct purchase plan (issuer-sponsored), you may be able to buy shares directly and request a certificate during enrollment.

Typical documentation includes government ID, proof of ownership (broker statement), and completed transfer agent forms.

Transfer agents and DRS

Transfer agents maintain shareholder records and issue certificates when authorized. The Direct Registration System (DRS) allows investors to be registered on the transfer agent’s books without a broker. With DRS you can:

• Have shares registered in your name electronically (no broker custody);
• Request a paper certificate from the transfer agent if the company and agent allow it.

Transfer agents vary in fees and timelines; contact the specific agent for details.

Costs, timing and procedural considerations

Do companies still issue paper stock certificates, and at what cost? Expect:

• Fees: Transfer agents or brokers often charge processing fees for issuing a physical certificate. Typical fees can range from modest to substantial depending on the firm and whether expedited service is required.
• Timing: Processing and mailing can take days to several weeks depending on jurisdiction, transfer agent workload, and whether notarization or medallion guarantees are required.
• Administrative steps: Issuance may require signature guarantees, notarized documents, or surrender of electronic registration depending on the situation.

Brokers sometimes refuse to take on the extra administrative burden of paper certificates, or they may charge higher service fees to handle the request. Always ask about fees and expected timelines before initiating a request.

Risks and disadvantages of paper certificates

While a tangible certificate can feel satisfying, there are real disadvantages:

• Loss, theft, or damage: Paper can be destroyed or stolen. Replacing a lost certificate can be time-consuming and costly.
• Forgery and fraud risk: Physical documents can be forged; transfer agents use safeguards but replacement often requires affidavits and indemnity bonds.
• Slower transfers and higher costs: Selling or transferring shares held as paper certificates is slower than electronic settlement and may require physical delivery.
• Administrative burden: Surrender, reissue and transfer processes often need medallion signature guarantees or courts’ letters in extreme cases.

Because of these risks, many investors prefer DRS registration or secure broker custody for active trading.

Advantages and reasons investors request paper certificates

There are valid reasons investors still ask: do companies still issue paper stock certificates? Some motivations include:

• Tangible proof and peace of mind: Physical documentation can be important for legal or family-transfer reasons.
• Collecting and historical value: Vintage or specially designed certificates can have collectible value separate from the stock’s market value.
• Gifting or presentation: Certificates make for formal gifts or commemorative items.
• Specific legal needs: In some estate or litigation situations, a physical certificate can simplify matters.

If any of these reasons apply to you, be prepared to accept the costs and security measures needed to hold and transfer a paper certificate safely.

Lost, found or old certificates — validation and recovery

Finding an old certificate raises the question: do companies still issue paper stock certificates and how do you validate an old one? Steps:

1. Check issuer name and CUSIP: Confirm the corporate name, CUSIP number and whether the issuer still exists or has reorganized.
2. Contact the transfer agent: Transfer agents can confirm whether the certificate is valid and whether the shares are still outstanding or were canceled in corporate actions.
3. Replacement process: Replacing a lost certificate typically requires:
   • An affidavit of loss;
   • A surety or indemnity bond (often equal to the certificate’s market value plus a margin) to protect the issuer from fraudulent claims;
   • Payment of fees.
4. If the issuing company no longer exists, you may need to check the state’s unclaimed property office or the successor entity.

Experienced legal or transfer-agent help can simplify the process; UpCounsel and LegalZoom provide practical guides for replacement steps.

Collecting and historical value

Some paper stock certificates have value beyond the underlying shares:

• Design and engraving: Early certificates are often prized for ornate engraving and designs.
• Historical importance: Certificates from firms that played key roles in industry history or those associated with famous founders can be collectible.
• Rarity and condition: The usual collectors’ drivers — rarity, provenance and condition — determine market value.

Collector communities, auction houses and specialty dealers often price certificates by these criteria. Even after a company becomes defunct, a certificate might retain collectible value.

Emerging trends and future outlook

The general trend is a continued decline in routine paper issuance. Drivers include cost savings, regulatory modernization and market efficiencies. Notable developments:

• Uncertificated shares and strengthened DRS adoption reduce the need for paper.
• Digital pilots and blockchain experiments: Some issuers and regulators have explored tokenized or digitized securities to further reduce friction and enable new settlement models. These pilots were under evaluation as of mid-2024.
• Collectibles and commemorative issuance: Companies may still issue special physical certificates for commemorative purposes even as ordinary shares remain electronic.

Overall, do companies still issue paper stock certificates? They will, but mostly as exceptions, historic artifacts, or by investor request rather than as the default.

Practical recommendations for investors

If you want a paper certificate or are handling an old one, follow these practical steps:

1. Confirm current registration: Check statements or contact your broker to learn whether shares are held in street name, DRS or by certificate.
2. Consider alternatives: DRS registration gives you the benefits of being registered in your name without the security risks of paper.
3. Contact the transfer agent: If pursuing a certificate, identify and contact the transfer agent for forms, fees and processing times.
4. Protect physical certificates: If you receive a paper certificate, store it securely (bank safe deposit box or certified vault).
5. For trading convenience: If you plan to trade frequently, consider keeping electronic custody through your broker or DRS to avoid delays.

If you actively trade or want streamlined custody and security, consider modern platforms. Bitget offers custody and trading services as well as the Bitget Wallet for secure electronic asset management suited to modern investors who prefer digital custody over paper certificates.

Frequently asked questions (FAQ)

Q: Are paper stock certificates required for legal ownership?

A: No. Legal ownership is typically determined by the corporate register and applicable laws. Many jurisdictions recognize uncertificated or electronic registration as legally sufficient.

Q: Can I hold both a paper certificate and electronic registration at the same time?

A: Generally no. Shares are either registered electronically or represented by a physical certificate; converting between forms requires surrendering one form and recording the other (for example, surrendering a certificate to register electronically via DRS).

Q: What if I find an old certificate from a defunct company?

A: Check the issuer’s status, contact the transfer agent or state unclaimed property office and be prepared for a potentially complex recovery process if the company reorganized.

Q: Who pays for issuance of a paper certificate?

A: Usually the requesting shareholder pays fees charged by the transfer agent or broker for issuance and processing, unless the company offers certificates as a courtesy.

Q: How long does it take to get a paper certificate?

A: Processing can range from a few business days to several weeks depending on transfer-agent workload, required notarizations, and mailing.

References and further reading

• SIFMA white paper on electronic holdings (industry perspectives on book-entry and DRS)
• Investopedia — The Disappearance of Paper Stock Certificates
• UpCounsel — Can You Still Get Stock Certificates?
• LegalZoom — How to Distribute Stock Certificates
• CGAA — Companies That Issue Paper Stock Certificates (practical lists and examples)
• Seeking Alpha — Stock Certificate: Definition, History & Uses
• Transfer agent resources and issuer investor relations pages for company-specific procedures

As of 2024-06-01, these sources collectively indicate electronic/book-entry systems are the predominant method of recording share ownership, though paper certificates remain available in specific situations.

Notes on accuracy and jurisdictional variation

Practices and legal rules vary by country and, in the U.S., by state and by issuer charter or bylaw. For authoritative, case-specific guidance, contact the issuer’s transfer agent, a corporate attorney, or the appropriate regulator.

Further exploration and how Bitget fits in

If your goal is fast trading, reliable custody, and modern asset management, consider platforms that prioritize secure electronic holdings and clear transaction records. Bitget offers trading services and the Bitget Wallet for secure custody and management of electronic assets. For investors transitioning away from paper certificates, Bitget’s tools can help manage electronic positions, execute trades efficiently and keep transaction records accessible.

Want help with a specific company or transfer agent process? Contact the issuer’s investor relations or your broker — and if you’re exploring modern electronic custody as an alternative to paper, explore Bitget Wallet and Bitget exchange services to streamline your holdings.

Closing — Next steps and resources

If you’re still wondering do companies still issue paper stock certificates, the practical bottom line is: most shares today are electronic, but paper certificates are still possible by request or in special cases. To act now:

• Check your account statements and registration status.
• Contact the transfer agent for the issuer in question.
• Weigh the costs and security trade-offs before requesting a certificate.
• If you prefer efficient, secure, electronic solutions for custody and trading, explore Bitget Wallet and Bitget exchange features to modernize how you hold and trade equities.

Further reading is available from the SIFMA white paper, Investopedia, UpCounsel and transfer agents’ investor pages.

References: SIFMA white papers, Investopedia, UpCounsel, LegalZoom, CGAA, Seeking Alpha (all accessed as of 2024-06-01).